Portillo's Inc. (PTLO) stock analysis

P/E above its 5-year median

Portillo's's P/E of 30.9 is above its own 5-year median of 26.8.

P/E above the industry

Portillo's's P/E of 30.9 is above the Eating and Drinking Places median of 28.0.

EV/EBITDA below its 5-year median

Portillo's's EV/EBITDA of 11.7 is below its 5-year median of 13.4.

P/B below the industry

Portillo's's price-to-book of 1.06 is below the Eating and Drinking Places median of 3.18.

Trading below fair value

The share price of $6.79 is below our fair value estimate of $7.92.

Margin of safety under 20%

The price is 14.3% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 7.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 2.6% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 4.2% over the last twelve months; the Eating and Drinking Places median is 5.9%.

Guidance lowered

Portillo's lowered its fiscal 2026 General and administrative expenses outlook on Aug 5, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 3.6% over the last twelve months and averaged 2.9% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 4.5%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Portillo's's return on equity of 3.6% is below the Eating and Drinking Places median of 7.9%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 2.3% over the last twelve months, against a 5-year average of 1.7%.

Net margin above the industry

Portillo's's net margin of 2.3% is above the Eating and Drinking Places median of 1.9%.

High debt

Debt is 66.8% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 334% five years ago to 66.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 26.1% of total debt.

Interest not well covered

Operating income covers interest expense 1.8 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.27 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.80; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Portillo's has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.